LAVA Advisory Partners: What the inflation drop means for UK interest rates
In light of the surprise drop in inflation, Hamish Martin, Partner at LAVA Advisory Partners, has offered his thoughts on the significance of this news and what it might mean for interest rates:
'Inflation stabilising is a welcome sign that price pressures are gradually easing. The timing is no doubt a welcome boost ahead of the Chancellor's Spring Statement, too. However, with inflation still above target, the Bank of England is unlikely to rush into interest rate cuts. While businesses and consumers will take some comfort in this trend, the real test will be whether inflation continues its downward path in the coming months as the major bodies predict, in which case we should be in good shape for a strong end to the year.'
